The good thing about this sun life insurance product is that part of your payment pays for the insurance and part is invested in a mutual fund like investment. So your family / dependents are protected in case of dying too young (wag naman sana) and at the same time, you can also benefit if you live too long (for retirement). Ika nga, walang tapon, walang sayang.
Sun Maxilink Prime is actually a VUL (Variable Unit-Linked ) Insurance. To better understand what a VUL is, check this video of Pesos and Sense.
Here’s the exact words from Sun Life Financial website.
The Sun MaxiLink Prime is a peso denominated variable life insurance plan (VUL) that provides financial protection PLUS a potential source of savings that can fund future needs like retirement income through its investment earnings. There are 5 funds to choose from where your premium payments will be invested in. These funds are managed actively and prudently by our top-notch investment professionals.
Sun MaxiLink Prime is payable for at least 10 years*
* The premium paying period is not guaranteed. You may be required to pay additional premiums after 10 years if the fund value is insufficient to pay charges. (cases like consecutive years of bad economic situation, delayed payments and skipped payments)
Here’s my realization why I had to get a life insurance. Why it’s a must for every breadwinner -
Being the head of my family, I have lots of dreams for my son Jacob. I want him to be successful in any field he chooses later on. But what if I Die Too Young. Those dreams will die with me. So the idea of life insurance is that, it can replace my income. So in essence, even if I die, that dream can still live on with my insurance benefits. It can be used by my wife to support for both of them and Jacob’s education also.
If I had known this product earlier (way back when I was still single), I would have gotten it already. Imagine if I was able to get this at age 24 or 25, I would only need to pay 3 years and it’s already fully paid.
Here’s an actual proposal for myself when I got the plan -
Garry, 30 years old, Male, non-smoker
- Insurance Coverage – 1 Million (this is actually my 3rd insurance policy when I got this one).
Update – total life insurance coverage as of Dec 2012 is already 3.5 Million. Is it enough? Check this article Is Your Life Insurance Coverage Enough?
- Payment of P2,500.00 monthly or a total of P30,000.00 per year. (payment mode is annual or semi annual. Best result if annual mode since the fund is invested early so the higher potential of earning. You may also opt for quarterly but we highly discourage as there’s a high probability of lapsing if quarterly mode.)
(the amount really depends on how much you can comfortably save. Minimum of P1,500 month for 20-25 years old for female. Also, the older you get, the higher the payment is. P2,500 may be good for a 30 year old but not for a 40 year old male. So better get as early as you can)
- Face Amount – P500,000.00 (plan feature is it doubles the death coverage so it’s actually 1 Million death coverage)
In case of Dying Too Young (problem for my dependents)
- In case of death, my beneficiaries will receive – P1 Million (times 2 or 200% of the face amount)
- In case of accidental death (ADB Rider), my beneficiaries will receive an additional of P500,000 or a total of P1.5Million.
- In case of total disability (TDB Rider) while paying, plan is considered fully paid.
Other optional rider (depends on which country you’re working)
- Accidental Death, Dismemberment and Disablement (payment up to 100% of face amount in case of loss of certain body parts like hand, foot, finger, eyesight etc)
- Waiver of Premium upon death of initial owner (if the life insured is a child)
- Waiver of Premium upon death or disability of initial owner (if the life insured is a child)
What if I Live Too Long? (problem of retirement)
At age 65, in case nothing will happen to me (hopefully), my fund value that I can withdraw is projected at
P586,000 – at 4% fund performance
P2,000,000 – at 8% fund performance
P3,773,601 – at 10% fund performance
(computed at 4%, 8% and 10% as it depends on the performance of the fund. But based on the completed 6 years , Equity Fund averaged at 17.08%, Balanced Fund at 14.39% and Bond fund at 8.15%)
Basically, there’s nothing to lose. I will be required to pay for 10 years so my total contribution is P300k in 10 years. During those time, in any case I die (wag naman sana agad), my family will instantly get P1Million. So it’s like I’m buying P1Million with P300,00 on an installment basis for 30 years. How good can it get, right?
And if I live too long, (grow old up to age 75-80 hopefully), I can then enjoy the fund value of P587,000 – P3.7Million (projection only at age 65). Not bad di ba?
Also, in case of emergencies, I am allowed to make partial withdrawal on the fund value without any interest or whatsoever. It’s my money anyway. As long as the fund value does not equal to zero, the insurance is still in-forced.
The one I showed above is only for 1 Million death coverage – P30,000 a year or P2,500 per month.
For a 1.5 Million death coverage, payment (premium) is at P45,000 a year or P3,750 per month.
For a 2 Million death coverage, payment (premium) is at P60,000 a year or P5,000 per month.
For a 3 Million death coverage, payment (premium) is at P90,000 a year or P7,500 per month.
For a 4 Million death coverage, payment (premium) is at P120,000 a year or P10,000 per month.
The best part of it – you don’t have to die to benefit from it. Even while living, you can get to withdraw the fund value at a rate better than what our banks are giving us.
Ikaw ba insured na? Get a sample proposal if you don’t have any form of insurance yet. Aside from wealth accumulation feature, getting an insurance is one of the many ways of showing how we truly love and care for our family.
Want a FREE proposal based on your age and profile? Simply fill up the form below. Note: One must be in the Philippines at the time of application.
In case you’re outside my jurisdiction, I’ll refer you to a trusted Sun Life advisor in your area say you’re in the Visayas or Mindanao area.
YM – gigabytes27
Mobile – 0922 897 8977 / 09164147400
Viber – +639164147400
Email – email@example.com / firstname.lastname@example.org